Many people think about making a Will so that their loved ones are provided for following their death, but quite often they don’t consider how they can ensure their affairs are managed ‘during’ their lives.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that lets you appoint a nominated person(s) to make decisions on your behalf.
Should all adults make a Lasting Power of Attorney?
We recommend that all adults make a Power of Attorney. They are particularly important for the elderly who are frail, in hospital or in a care home.
Are there different types of LPA?
Yes, there are two types of Lasting Powers of Attorney (LPA):
- Property & Financial Affairs – this gives your attorney the authority to make decisions about your property and financial affairs.
- Health & Welfare – this gives your attorney the authority to make decisions about your personal welfare and health care, including medical treatment.
What does it cost?
We prepare and register a single LPA for a fixed fee of £399 plus VAT and £500 plus VAT for both the Property and Financial affairs and Health and Welfare LPA’s. A discount will be offered if we prepare two Powers of Attorney for spouses, civil partners or co-habitees. There is a fee of £82 payable to the Office of the Public Guardian upon registration of each single Power of Attorney made.
Are LPAs as important as Wills?
LPAs are as important as having a Will for ensuring your wishes are followed. While an estimated 40% of the adult UK population has a Will – less than 1% has an LPA.
I’m a business owner – how can an LPA benefit me?
As a business owner, it’s more important than ever to have a solid continuity plan to ensure that your business will keep running smoothly if you were to become unable to make decisions.
Reasons that you may be unable to make those decisions could be if:
- you were abroad on holiday or for business
- you were to have an accident
- you were to have a medical condition that incapacitated you
If that were to happen with no plan in place, there are implications for your business that you need to consider. For example:
- who will authorise the payment of bills?
- who will sign cheques?
- who will pay salaries?
- who will have the authority to liaise with suppliers/customers?
- who will be the decision maker?
- who will be authorised to speak with the bank should the need arise?
Don’t assume that a family member or a business colleague will gain the authority to make these decisions on your behalf – this assumption could leave your business exposed to risk.
To protect your interests, and those of your business, you should consider making a Business Lasting Power of Attorney. This way you choose and appoint the person(s) you wish to be responsible for decision making, in the event that you are unable to. Leaving you secure in the knowledge that in your absence, be it short-term or long-term, your business will be safe in the hands of the people you trust.
What is a Health and Welfare Power of Attorney?
A Health & Welfare Lasting Power of Attorney covers decisions about health care as well as personal welfare. The Power of Attorney can only be used once the donor has lost mental capacity to make those decisions themselves. A Health & Welfare Power of Attorney would enable an attorney to make decisions about, for example, your daily routine (e.g. eating and what to wear) medical care, moving into a care home and life sustaining treatment.
What is the process for making a Lasting Power of Attorney?
Once the LPA has been drawn up it has to be registered with the Office of the Public Guardian (OPG) before it can be used by your attorney. Once registered the LPA can be used by your attorney, even if you still have mental capacity to deal with your affairs. Early registration is, nevertheless, recommended as the OPG can reject LPAs for a variety of reasons. Once rejected, the LPA is regarded as invalid.
An LPA can only be made if the donor has the mental capacity to do so. Once capacity has been lost, an application to the Court of Protection is required to approve a deputy to deal with a person’s financial affairs. This is a much more lengthy and expensive process.
An attorney has to act in your best interests at all times and can only make a decision on your behalf if he has a reasonable belief that you have lost the mental capacity to make that particular decision.
For further advice, contact our specialist team on 01792 468684 or email enquiries@pgmsolicitors.co.uk.
